Tesla received a bump last week despite Elon Musk's revenue announcement ((TSLA) Still facing a tough battle. The stock started this week with a fall, suggesting that the stock's momentum may be short-lived.
Musk announced his plan to cut work with the Ministry of Government Efficiency (DOGE) (DOGE), and many investors were pleased that the market responded well despite Musk's statement being vague. Now it seems that a few days later, the hype is already calming down.
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TSLA stocks still have a lot to make up for, down more than 27% year by year (YTD). Given the company's disappointing first-quarter earnings report, the company will need to show investors its ability to turn things around.
Unfortunately, for Tesla, one of its main markets is getting more and more crowded. One of Musk's biggest competitors has a new adventure, which can mean very bad news.
As Tesla's revenue suggests, the company has had a lot of trouble with selling cars. While the electric vehicle (EV) market remains strong, consumer sentiment towards Tesla has seriously hurt its growth globally as opposition to Musk's political affiliation continues to spread.
One product that proves difficult to move is Seberak. Musk hyped Tesla's futuristic trucks as the company prepares to launch it. But as TheStreet recently reported, photos show Tesla stunning these vehicles in the parking lot, apparently unable to sell them.
Related: Major analysts believe Tesla and Elon Musk have run out of time
Now, there is a key player in the electric truck market, who has competed with Musk in multiple ways. Amazon founder Jeff Bezos is supporting a fast-growing EV startup called Slate Auto, which is priced at a significantly lower price than Cybertruck.
Founded in 2022, the startup operates in stealth mode and has swept the scene until this year, splashing many heads, possibly Musk. The cheapest Sepbock currently costs around $69,990, while the Slate's electric truck costs just $25,000, under $20,000 and receives an EV tax credit.
Slate CEO Chris Barman is a mechanical engineer who spent most of her career with Chrysler, helping the company expand its business. She believes that her team can only create an affordable electric truck, highlighting their innovative modeling and design efforts.
āBy the end of 2027 or early 2028, we are working on (producing) 150,000 units a year,ā she said. āWe think people would say, āWow, now I can afford a new car with the latest safety standards and have a full warranty, which will keep me stable over the next five to ten years.ā
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If Slate can do this successfully, the company will remove some things that Musk cannot do. The Tesla CEO spent years mocking a $25,000 vehicle, but last year was just to abolish the plan, disappointing many consumers who wanted to own Tesla.
Now one of his competitors is a major step towards defeating him into the market.
For years, experts have speculated which company should be regarded as a "Tesla killer" or a company with the greatest ability to be the leader of the EV race.
Related: Experts send alerts on Elon Musk's misleading Tesla plan
Many experts suggest Rivian might be the candidate, pointing to the stylish trucks and stylish SUVs of EV startups. But now it looks like Slate can compete with both companies in a great position as it is ready to launch with a much lower visually attractive electric truck than any automaker.
As TechCrunch points out, the slate pickup is in sharp contrast to the Seberak. "It's affordable, customizable, and very simulated," the media reported. "It has manual windows and there is no major infotainment screen."
It added that vehicles can even be transformed from pickup trucks to SUVs with more seats.
The fact that Bezos invests in companies that make anti-Tesla products shows that he remains committed to putting Musk down. His space exploration company, Blue Origin, is already comparable to SpaceX. Now, he is also competing for Musk in the electric car market.
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